Sarama Resources Advances Acquisition of Gold Project in Western Australia

Sarama Resources Ltd. has announced a binding agreement to acquire a majority interest in the Cosmo Newbery Gold Project in Western Australia. The 580km² project covers the Cosmo-Newbery Greenstone Belt, approximately 85km north-east of Laverton. This region is known for its prolific gold endowment but remains effectively unexplored.

The agreement allows Sarama to initially acquire an 80% interest in the project and later increase it to 100% within two years. Sarama's President and CEO, Andrew Dinning, highlighted the project's unique exploration opportunity given its scale, location, and underexplored status.

The project consists of seven contiguous exploration tenements and offers excellent infrastructure access. Historically documented gold workings in the area further underscore the project's potential. Despite the region’s prospectivity, modern exploration techniques have not been applied due to previous land access issues, which have now been resolved.

The transaction terms include issuing Sarama shares and unlisted options to Cosmo Gold Limited and Adelong Gold Limited, and covering various project-related expenses. Upon completion, Sarama and Cosmo will form a joint venture with Sarama holding 80% interest and maintaining the project's operations.

Future exploration will focus on targets identified through regional soil sampling and limited reconnaissance drilling. The company anticipates that systematic modern exploration programs will enhance the understanding and potential of the project.